Caesars Comes Out On Top in $18 Billion Bankruptcy Megacase
The iconic Caesars Entertainment Corp (CZR) has just concluded proceedings in an $18 billion bankruptcy filing that will allow the organization to skirt $10 billion off the sum. Now the gaming conglomerate turns is focus to renew its flagship casino and resort properties, Harrah’s, Caesars, and Horseshoe brands which have suffered of the last two years’ Chapter 11 events.
Courts approved the Caesars Entertainment Corp subsidiary, Caesars Entertainment Operating Co Inc’s (CEOC) plan to shave $10 billion in debt and provide a clear separation between gaming operations and real-estate assets. Following the favorable outcome, Caesars is anticipating moving forward and out of bankruptcy as early as late 2017.
The deal was struck between Caesars and an aggressive team of creditors resulted in a $5 billion settlement that ultimately provided Apollo Global Management (APO) and TPG Capital Management LP (TPG), Caesars’ private equity sponsors, a retained 16% stake in the reorganized Caesars. The stake will not be true equity in the company, but rather a stake in the trust tasked with housing the assets.
President and chief executive officer of Caesars Entertainment Mark Frissora released a statement yesterday, “Upon CEOC’s emergence, we will be positioned to strengthen our financial and operational performance by pursuing new opportunities to invest in and expand our brands and business.”
Outlining plans for the future, Frissora expects the group to emerge with another subsidiary that will be tasked with the regrouping and reorganization of all casinos under the brand. The subsidiary charged with the undertaking will be Caesars Acquisition Co (CACQ).
The new developments will offer Caesars a competitive presence in a place where its influence had been waning on the strip when compared to groups that have in recent years overtaken the spotlight, including MGM, Wynn, and the Las Vegas Sands Corp.
The United States Bankruptcy court’s judge, the Honorable A. Benjamin Goldgar presided over the case, of which the full documentation of hearing sand joint plan of reorganization can be viewed by the public, here.
Where To Break New Ground
Caesars will be endeavoring to offer more attractive and modern gaming options in an effort to secure a strong portion of the millennial market, steering away the waning popularity of slots as the baby-boomer generation eases into retirement.
Gaming Union analyst John DeCree reaffirmed that, “Caesars has been one of the pioneers in that respect,” and that, “The biggest challenge is going to be getting the new structure under control.” As the parent company finalizes its merger with Caesars Acquisition, approval from regulatory bodies and adequate financing will no doubt make the newly proposed developments trials in their own rights.
French online poker site Winamax recently concluded its two-month investiga...
Phil Ivey Played at WSOP and Borgata Noticed In December 2016, Phil Ivey a...
The first full-scale casino resort located in Massachusetts is set to open ...
It was revealed on Wednesday that Pennsylvania won’t be ready to offer sp...